Fewer credit agreements yet SA’s consumers still drowning in debt
Statistics indicate that consumers are becoming overindebted more quickly than in previous years
Consumers have significantly fewer credit agreements than in previous years yet are becoming overindebted at a faster rate. This is according to the latest statistics released by the Independent Debt Management (IDM) Group, which comprises debt counselling firms Debt Busters and Consumer Debt Help. Benay Sager, the COO of the IDM Group, says statistics from the third quarter of 2018 show that consumers entering debt review had six credit agreements, on average, compared to nine in 2013, “indicating that consumers are becoming overindebted more quickly than in previous years”. Sager says consumers, particularly those aged 40 to 59, are also taking larger unsecured and payday loans. Their payday loans were 30% larger than those of younger clients and their unsecured loans were 16% higher. High amounts of debt in the 40 to 59 age bracket are concerning because in this age range your family should be reaching adulthood and you should clear your debts or be close to doing so and able to ...
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